Farm prices plummet and exchange rates fluctuate due to monetary shocks
The study looked at how changes in monetary policy affect farm prices and exchange rates. They used a special type of model to analyze the data. The results showed that when the government tightens its monetary policy, farm prices drop more than overall prices. Also, the impact on farm prices is stronger than on exchange rates. Lastly, farm prices take longer to adjust to monetary policy changes compared to exchange rates.